The cutting of its earnings guidance cast a pall over its fiscal-second quarter earnings and revenue that beat Wall Street analysts’ expectations.
In response, investors sent L Brands shares down by 9.3% to US$29.46 in Thursday's pre-market session.
The Columbus, Ohio-based company now expects to its full-year per-share earnings to fall in the range of US$2.45 to US$2.70, which represents a dip from its previous projection of US$2.70 to US$3.00.
For the quarter, L Brands reported net income of US$99mln or US$0.36 per share, compared with US$139mln or US$0.48 per share in the year-ago period. Its net sales, meanwhile, jumped to US$2.98bn, up from US$2.76bn last year.
Read: Victoria's Secret parent L Brands Inc shares up after February sales numbers, US$250mln stock repurchase program
The quarterly results topped the expectations of analysts, who had anticipated that L Brands would earn US$0.34 on revenue of US$2.93bn.
Same-store sales at Victoria’s Secret slipped by 1% in the quarter, as the lingerie maker faced fierce competition from mainstream brands as women opted to buy underwear at stores that sell a range of casual clothing.
Same-store sales climbed 10%, meanwhile, at Bath & Body Works, where business was better. Overall, comparable sales were up 3%.
In separate news, the company announced that Denise Landman, who is at the helm of Victoria’s Secret PINK, will retire at the year’s close and be replaced by Amy Hauk, an executive with Bath & Body Works.
Looking to the third quarter, L Brands projects its earnings per share will fall between US$0.00 and US$0.05, which compares poorly with analysts projected forecast of US$0.16.
Contact Ellen Kelleher at [email protected]